The government may regulate production but not prices.

Question

Quizplus · Accepted Answer

The government can regulate both production and prices, depending on the specific industry and the government's policies. For example, some countries regulate the prices of essential goods such as medicines, utilities, and food items to prevent inflation and ensure their affordability for all citizens. However, in some cases, the government may choose only to regulate production to ensure product quality and safety without interfering in the market's price dynamics.

The Government May Regulate Production but Not Prices